Proceeding contribution from Mike O'Brien (Labour) in the House of Commons on Wednesday, 5 December 2007. It occurred during Ministerial statement on Benefits Uprating.
Benefits Uprating
The hon. Gentleman asked about the earnings link, and we have already legislated to ensure that it will be brought in after 2012 during the course of that Parliament. As to winter fuel payments, we never intended them to cover all the costs of heating, lighting and so forth for pensioners. It has rather been a contribution towards those costs. We know—and I know from my time as Energy Minister—that fuel prices dipped, but they have now come back up, which has meant significant changes in the cost of fuel on the market. However, as a result of our uprating of various benefits, particularly pension credit, to the poorest pensioners and the more general improvement in benefits and pensions for retired people, we also know that their income has steadily risen. They should be able to deal with issues around fuel poverty; indeed, we have been able to improve their position with respect to it. I hear what the hon. Gentleman says about winter fuel payments, but it is a matter for my right hon. Friend the Chancellor of the Exchequer. As far as I can see, however, the record on winter fuel payments from 1997 to now is an extremely good one. The take-up of pension credit has been a long-term issue. It is the case that we have written as many as four or five times to some of the people who we think should be claiming pension credit. For various reasons—they may not want to fill in the forms, or they may feel that they would not get very much—they decide not to. Some of them are surprised when they make a claim, as they receive far more than they expected. We are still working to encourage people to take up pension credit. Indeed, we hope to visit as many as 600,000 pensioners during the coming year to see if we can encourage better take-up. The changes that will come into force in October 2008 will provide quite an incentive for people to move forward and take up pension credit between now and then. The hon. Gentleman rightly refers to complexity, which has been a long-term problem for the pensions sector. Through the Pensions Act 2007, and indeed the new Pensions Bill, we aim to simplify and clarify a very complex system indeed. The changes I have announced today, particularly the automaticity of benefit application, will help ensure that some of that complexity is dealt with. The hon. Gentleman rightly asked about data security. Personal accounts will require the transfer of some data between HMRC and the pensions regulator. We want to ensure that it is transferred in an appropriate and proper way and that proper controls are undertaken in respect of it. As for means-testing, we have sought to use it to ensure that we tackle the key issue of pensioner poverty. We have had considerable success in doing that, and the proposals that I have announced will help us to build on our record, but there is still much more that we can do. Changes that we are making in the way in which benefits are available will, over time, start to reduce some of the means-testing. We have never been in favour of it, but it is one of the best ways of targeting help on the poorest people. I cannot yet give the hon. Gentleman a publication date for the Young review. I want to be able to look at it and consider it, and I know that it is likely to be quite a complex report. I hope to receive it in the next few days, and although I cannot give the hon. Gentleman a commitment, I hope to be able to say something about it before Christmas. The hon. Gentleman mentioned some report in the weekend press. Let me say to him that obtaining information from the press is never wise.
Secondary information
- Type
- Proceeding contribution
- Reference
- 468 c848-9
- Session
- 2007-08
- Chamber / Committee
- House of Commons chamber
- Subjects
- Council tax benefits Children Housing benefit Jobseeker's allowance Income support Pension credit Pensioners Workplace pensions Pension rights Overseas residence Social security benefits State retirement pensions Young people Telephone services Uprating Pension Service
- Link
- View this Proceeding contribution on www.publications.parliament.uk
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